Nasdaq 100 Rallies on Semiconductor Strength as Rates Market Signals Further Rate Hikes

The Nasdaq 100 index rose by 1.7% on Thursday, driven primarily by the semiconductor sector's surge of 3.1%. The rates market is pricing a year-end policy rate of 4.74%, indicating an additional rate increase of 22 basis points this week.

Meanwhile, ten-year Treasury yields reached 5.04% in Tuesday trading, their highest level since the summer of 2007, before closing the week at 5.00%. Federal Reserve Credit expanded by $207 billion over a 40-week period, increasing to $6.698 trillion last week.

The market's performance has sparked debate about the effectiveness of Chair Warsh's leadership. Some question whether he will backpedal in response to economic downturns, potentially undermining investor confidence.